Brexit poses a risk to the global financial system and could involve tens of thousands of job losses in the City, MPs have been warned.
Xavier Rolet, chief executive of the London Stock Exchange (LSE), warned that Brexit could have an impact on “unimaginably large” contracts which are cleared through the City and which might need to be transferred to the 27 remaining EU member states.
The HSBC chairman, Douglas Flint, also giving evidence to the Treasury select committee, said that while banks did not want to move activities outside London they had to plan for the worst.
They called for clarity from Theresa May on the UK’s approach to the EU ahead of the start of formal exit negotiations. The prime minister has said that article 50 – the formal process of leaving the EU – will be triggered in March, which has prompted warnings that banks will implement plans to let them keep operating inside the EU. Anthony Browne, chief executive of the British Bankers’ Association, has warned that banks were quivering over the relocate button.
Flint said that some US banks in London were able to transact with big European companies because they used a “passport” from their operations in the UK and would need to find a way to keep doing this. He estimated that tens of thousands of jobs in London were at firms with such operations.
via The Guardian
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